Fenics Market Data launches new data service for AUD Interest Rate Swaps
Fenics Market Data, a division within BGC Group, Inc. (NASDAQ:BGC), today announced the launch of a new data service for Australian Dollar (AUD) Interest Rate Swaps (IRS).
The new service, based on executable data, will bring greater transparency to the market, helping to reduce the risk of mispricing.
Working with market participants, Fenics Market Data created a unique service that is now the only composite screen available for AUD IRS, compiled from live, executable inputs from multiple market participants. The service was launched with over 50% of the market contributing, and that percentage is expected to increase to more than 80% in the coming weeks. The service is available on Bloomberg (FMDS<GO>FABD).
Dr. Keith Nicolle, product strategist at Fenics Market Data, said:
“Transactions such as Interest Rate Swaps, that are priced using a narrow, single venue price reference source, are under scrutiny from regulators concerned at mispricing for end user clients. The onus is on industry players to ensure that their price referencing sources are reflective of the whole market and not a singular view.”
Traditionally markets have relied on single Interdealer Broker (IDB) reference pages, which are only a subsection of the market, and not reflective of the broader view. Several IDBs produce a data page or screen for the AUD IRS market. These indicative data prices themselves are not tradeable, as the illiquid tenors are calculated by models. Since these pages only reflect an individual IDB’s view on the market, this naturally heightens the chances of mispricing that regulators are keen to prevent. The new Fenics Market Data AUS IRS service will deliver a complete market view, direct from market participants, comprised of tradeable prices.
Rich Winter, Global Head, Fenics Market Data and kACE Information Analytics, said:
“This is a transformative new service. By working together with market participants, we are helping our clients meet their regulatory needs. The power of harnessing extensive market contributions offers traders, risk and compliance officers, and managers alike, reassurance that the referencing source used by them for client trades is the broadest and most accurate reflection of real, observed prices in the market.”